2022 Financial Highlights
Direct Premium
Loss Ratio
Surplus
SFAA Market Share

Contract Production Highlights

Premium

Premium Growth

New Accounts

Premium from
New Accounts

Submissions

Premium from Leaderboard
Surety Elite Program

Premium growth from Leaderboard
Surety Elite Program
Specialty Solutions Production Highlights

Premium

Premium Growth

Goal

New Accounts

Submissions

Premium from SBA

Premium from Subdivision
Commercial Production Highlights

Premium

Premium Growth

Premium from
New Bonds

Premium from Pacesetters
Surety Elite Program

Premium growth from Pacesetters
Surety Elite Program

Agencies Achieving Higher
Pacesetters Status

Key Agency Relationships (from 219 to 252 agencies reaching $25,000 or more)
The
Merchants
Commitment
The strategic planning process that played out across 2022 captured the unique intersection of Merchants’ past, present and future and resulted in an evolved purpose and vision that can always serve our company and guide its growth.
Purpose
To be the most trusted team in surety with a courageous culture.
Vision
To become twice the enterprise through innovation and responsible growth.
Mission
To provide common sense solutions, first class experiences for every relationship, and an engaging culture for all associates to achieve long term, profitable growth.
Values
We value excellence, integrity and continuous improvement in all that we do.
We value an inclusive culture that inspires us to explore new ideas.
We value surpassing expectations by delivering a first class experience.
We value a positive and collaborative workplace through trust, loyalty and respect.
We develop potential through learning, involvement and the pursuit of opportunities.
We value balancing the needs of the company, our associates and their families.
We support our communities.
We celebrate and have fun!
Innovation & Responsible Growth
Innovation & Responsible Growth remain at the core of Merchants’ evolved vision, as the drivers of our now infinite goal.
New & Improved Bond Programs
Insurance Program Bonds Introduced
Merchants began offering Insurance Program Bonds (IPBs), providing a cost-effective solution to meet the collateral requirement for loss sensitive insurance plans.

Premium Growth
Bond Program Production
2022 results show the enthusiastic reception of these bond programs introduced in 2021.
RAP

Premium Growth
Customs Bonds

Premium Growth
NCP Bonds

Premium Growth
Increased Capacity
Merchants continues to expand by adding 7 new locations and 12 additional underwriters.
OFFICE LOCATIONS
Telemarketing
Expansion via telemarketing continued in 2022.

Agencies Telemarketed

New Agency Prospects Qualified

Premium from Telemarketed Agencies
Continuous Improvement
E-Bonding Growth
Year | Progress |
---|---|
2021 | 70% |
2022 | 90% |
Year | Progress |
---|---|
2021 | 358 |
2022 | 649 |
Year | Progress |
---|---|
2021 | 455 |
2022 | 2,478 |
Year | Progress |
---|---|
2021 | 5,072 |
2022 | 47,904 |
Integration Solutions
Integrations proved to be extremely successful in 2022, providing powerful connections that allow for seamless transactions. Merchants agency integrations allow agents to send bond orders directly from their website to the Merchants Bonding Company Hub™.

Bond Orders Fulfilled via Integrations
Doubled the Agencies Utilizing Erlon Integration
Automated Renewal Processing for California Contractor License Bonds
Merchants’ integration with the California State Contractors License Board provides an industry-leading level of service for issuing and electronically filing Contractor License Bonds (CLB).
Year | Progress |
---|---|
2021 | $49,202 |
2022 | $881,517 |
Year | Progress |
---|---|
2021 | $92,764 |
2022 | $991,879 |
Modernized Accounting Systems
In 2022 Merchants completed the migration of accounting from a legacy system to a web environment, making it possible to:
Enhance reporting and visibility
Consolidate and integrate functionality
Commitment to Quality Assurance
Merchants’ error ratio has decreased 85% since 2017. This achievement highlights Merchants’ commitment to consistency, accuracy and regulatory compliance of our core processes.
Inclusive Culture That Inspires
Diversity, equity, and inclusion (DEI) bring value to any organization. Merchants intentionally weaves DEI through the fabric of our culture so it’s reflected in our interactions, benefits, programming, and policies.
Paid DEI holiday off
Reviewed language to ensure inclusive vocabulary in internal and external assets
Associate engagement campaigns focused on a range of topics from inspiring women to veterans to cultural celebrations
DEI Education
Merchants introduced 41 new opportunities that allowed associates to attend, learn and engage with DEI topics; from self-guided studies to in-person events.

Honoring Indigenous Peoples

Honoring Indigenous Peoples

Honoring Indigenous Peoples

Honoring Indigenous Peoples

Honoring Indigenous Peoples

Supporting Women-owned Businesses

Supporting Women-owned Businesses

Supporting Women-owned Businesses

Hosting International Visitors for Cultural Awareness

Hosting International Visitors for Cultural Awareness

Hosting International Visitors for Cultural Awareness

Hosting International Visitors for Cultural Awareness

Hosting International Visitors for Cultural Awareness

Redlining and Climate Change Presentation

Celebrating Asian Pacific American Heritage Month

Celebrating Asian Pacific American Heritage Month

Celebrating Asian Pacific American Heritage Month

DEI Awards

Honoring Native American Day

Honoring Native American Day

Honoring Native American Day

Juneteenth Recognition

Juneteenth Recognition

Juneteenth Recognition

LGBTQ 101 Presentation

Cinco de Mayo Celebration

Cinco de Mayo Celebration

Cinco de Mayo Celebration

Cinco de Mayo Celebration
First Class Experience
Continued investments in the award-winning Hub™ make the connection between Merchants and agencies more secure, more efficient and more powerful.
The Hub provides the power for agencies to:




Agent Survey Results
Every three years Merchants surveys our agent partners to get a read on our relationship with them. This year's results reflect the input of more than 700 respondents who reported our highest ever ratings and included glowing adjectives like "responsive, quick, and easy" to describe their interactions with Merchants.
Agent Testimonials
Overall Satisfaction
736 Respondents
Year | Progress |
---|---|
2016 | 9.15 |
2019 | 9.44 |
2022 | 9.56 |
First Class Experience
722 Respondents
Year | Progress |
---|---|
2016 | 9.11 |
2019 | 9.52 |
2022 | 9.56 |
Common Sense Underwriting
848 Respondents
Year | Progress |
---|---|
2016 | 8.87 |
2019 | 9.38 |
2022 | 9.09 |
Relationship Grown Stronger
710 Respondents
Year | Progress |
---|---|
2016 | 8.38 |
2019 | 9.11 |
2022 | 9.25 |
Digital Content Marketing
Digital engagement of contractors and surety-related audiences remained a key marketing strategy in 2022. Leveraging a variety of platforms Merchants garnered in excess of two million views and impressions, an increase of 55%.
Digital Advertising
Impressions
Email Advertising
Impressions
Social Media
Impressions
MerchantsBonding.com
Views
YouTube
Views
Positive & Collaborative Workplace Culture
Merchants was once again awarded the national certification of Great Place to Work. The certification process captures employee feedback and details about the programs and practices that make Merchants’ workplace unique. Being certified enhances Merchants’ ability to attract and retain top talent. Results of the associate survey confirm our successful efforts to foster a truly welcoming and collaborative workplace.

Feel Welcomed When They Join the Company

Proud to Tell Others They Work Here

Feel Good About Ways Merchants Contributes to the Community
Top 3 Reasons Associates stay with Merchants

The People

Work/Life Balance

The Culture
Merchants’ communications hub connects associates located across the U.S. through company news posts, committee and interest group updates, and photo galleries.

Associate News Posts

Total Post Views

Reactions

Comments
Human Resources in 2022

Associates Promoted

Active Associates at Year-end

Positions Recruited and Hired
Develop Potential
Providing growth opportunities for all associates is a key focus for Merchants, and a number of new efforts were launched in 2022 to support that goal.
Training in 2022

Training Sessions Completed

Associates Attended One or More Training Sessions for Development
Underwriting E-Learning Training Program
An increased focus on training for underwriters resulted in new dedicated resources for both Contract and Commercial associates.

Dedicated Trainers Hired

New Courses Created

Estimated Savings
Internship Experience
Merchants’ award-winning program, developed to support a diverse talent pipeline for the company and the industry, was again recognized as one of the RISE ELITE 50.
Merchants’ Class of 2022

Interns Represented Diversity

Accepted Offers from Merchants
Balance the Needs of the Company, Our Associates and Their Families
Preventive Care Exam Pledge Campaign
Year | Progress |
---|---|
2021 | 25% |
2022 | 35% |
Healthy Workplace Winner
$1,000 reward was used for walking paths project


Quarterly Incentivized Health Challenges

Mental Health Awareness Resources

On-site Gym

On-site Massages

On-site Blood Drive

Dietician Programming

EleVate Group Dedicated to Strengthening Mind & Body
Celebrate Success & Have Fun!

Company Picnic

Company Picnic

Company Picnic

Company Picnic

Destination X Celebration – Ray Cole

Destination X Celebration – Ray Cole

Destination X Celebration – Ray Cole

Halloween

Health Week – Biometric Screenings

Health Week – Biometric Screenings

Holiday Party

Holiday Party

Holiday Party

Holiday Party

Holiday Party

Holiday Party

Intern Celebration

Intern Celebration

Intern Celebration

Intern Celebration

Iowa Technology Summit

Iowa Technology Summit

IT Outing – Pole Position Raceway

Josh Penwell Sendoff Party

Josh Penwell Sendoff Party

Kim McPartland Retirement Party

Kim McPartland Retirement Party

Leslie Hartschen Retirement Party

Leslie Hartschen Retirement Party

Mike Foster Retirement Party

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Party with a Purpose

Thanksgiving Luncheon

Thanksgiving Luncheon

Thursday Fest – Trivia

Annual Underwriter Meeting

Annual Underwriter Meeting

Annual Underwriter Meeting

Annual Underwriter Meeting

Annual Underwriter Meeting

Annual Underwriter Meeting

Annual Underwriter Meeting
Recognition & Rewards
The Bucketlist Rewards platform allows associates to recognize and celebrate their peers’ contributions and successes.

84
of Associates Recognized